LLQP Accident & Sickness · Component 2.1 · 30% of the exam
An accidental death and dismemberment policy pays a dismemberment benefit according to:
- AThe cost of the medical treatment the insured required after the accident
- BThe insured's income at the time of the accident, expressed as a number of months
- CThe insured's age at the time of the loss, with younger claimants receiving more
- A schedule of losses, each expressed as a percentage of the principal sum
Correct answer: D) A schedule of losses, each expressed as a percentage of the principal sum
Accidental death and dismemberment coverage is a scheduled-loss product, so each covered loss is paid at a fixed proportion of the principal sum without reference to actual cost or income.
Why the other options are wrong
- AThe benefit is not an indemnity for treatment costs.
- BIncome does not affect what a scheduled loss pays.
- CAge has no bearing on the percentage payable for a loss.
Exam tip
AD&D pays a schedule, not an indemnity.
Common mistake
Explaining AD&D as though it reimbursed medical costs.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.